Shares of three gold loan companies rose by 1.02% to 2.79% at 11:43 IST on BSE after the Reserve Bank of India's decision to allow non-banking finance companies to act as business correspondents of banks.
Manappuram Finance (up 2.79%) and Muthoot Finance (up 1.54%), edged higher.
The S&P BSE Sensex was down 20.40 points, or 0.08% at 25,348.50.
The Reserve Bank of India (RBI) on Tuesday, 24 June 2014, permitted banks to appoint non-banking finance companies (NBFCs) which do not accept deposits as their business correspondents (BCs), a move which could help extend banking services to remote areas.
Commercial banks hire BCs to offer basic banking services in areas where they do not have branches. The BCs act as agents of the parent bank.
Media reports suggested that working as BCs provides a strong fee income opportunity for these non-deposit taking lenders.
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